Vocab 10 Flashcards
Investing
Process of setting money aside to increase wealth over the long term financial goals such as retirement
Investment
Document or arrangement in which a person on puts his or her moment for long term growth invested money should not be used for a suggested min of 5 years
Liquidity
Quality of an asset that permits it to be converted quickly into cash with out loss of value availability of money
Diversification
Practice of dividing money a person invests btn several different types of investments in order to lower risks
Liquidity
Quality of an asset that permits it to be converted quickly into cash without loss of value availability of money
Portfolio
List of investments
Risk
Degree of uncertainty of return on an asset in Buisness the likelihood of loss or reduced profit
Risk return ratio
Relationship of substantial reward compar s to the amount of risk taken
Share
Piece of ownership in a company mutual und or other investment
Stocks
Securities that represent part ownership or equity in a corporation
Tax favored dollars
Money that is invested either tax deferred or tax free writhing a retirement plan
Liquidity
Quality of an asset that permits it to be converted quickly into cash without loss of value availability of money
Portfolio
List of investments
Risk
Degree of uncertainty of return on an asset in Buisness the likelihood of loss or reduced profit
Risk return ratio
Relationship of substantial reward compar s to the amount of risk taken
